positive output gaps

• What is a positive output gap also called?

  Inflationary gap
• What does a positive output gap indicate about actual output compared to trend output?

  Actual output is above trend output
• When does a positive output gap typically occur?

  During an economic boom
• What happens to resources during a positive output gap?

  Resources are fully used or overused
• What is the relationship between a positive output gap and unemployment?

  Unemployment may be low
• What does a positive output gap usually indicate about inflation?

  It means upwards pressure on inflation
• What are the key characteristics of a positive output gap?

  • Actual output exceeds trend output
  • Occurs during economic booms
  • Resources are fully or overused
  • Low unemployment rates
  • Upwards pressure on inflation